Question 1

Miguel and Anita make a $560 house payment every other week.Their loan is an example of a ____ mortgage.

Accepted Answer

A) growing-equity 
B) biweekly 
C) graduated-payment 
D) reverse 
A) growing-equity 
B) biweekly 
C) graduated-payment 
D) reverse

Question 2

Buying a home represents the largest expenditure most people ever make.

Accepted Answer

A) True 
 B)False

Question 3

Silvia and Jason would like to purchase a home with the following monthly expenses:
 
The couple needs to have an annual gross income of at least ____ in order to qualify for a loan if the front-end ratio requirement is 26 percent.

Accepted Answer

A) $57,462 
B) $61,385 
C) $73,615 
D) $83,077 
A) $57,462 
B) $61,385 
C) $73,615 
D) $83,077

Question 4

If the lender requires an 85 percent loan-to-value ratio,the borrower will have to make a ____ percent down payment.

Accepted Answer

A) 5 
B) 15 
C) 20 
D) 85 
A) 5 
B) 15 
C) 20 
D) 85

Question 5

John and Sarah bought a home last year and paid the following housing expenses during the year:
​
 
Assuming they are in the 28 percent marginal tax bracket,their standard deduction for the year is $11,600 and they have no additional expenses that they can itemize,how much more did they save in taxes from home ownership?

Accepted Answer

A) $7,150 
B) $5,194 
C) $5,148 
D) $2,002 
A) $7,150 
B) $5,194 
C) $5,148 
D) $2,002

Question 6

The formal legal document that outlines the actual agreement to buy a house is called a(n)

Accepted Answer

A) offer to purchase. 
B) warranty deed. 
C) purchase contract. 
D) contingency contract. 
A) offer to purchase. 
B) warranty deed. 
C) purchase contract. 
D) contingency contract.

Question 7

When the purchase contract is signed,the seller keeps the earnest money as a deposit against the purchase price.

Accepted Answer

A) True 
 B)False

Question 8

Most communities and housing developments have rules that govern such things as minimum lot size,the outside appearance and landscaping of the property,allowable secondary buildings,parking of vehicles,and other aspects of the use and appearance of the property.

Accepted Answer

A) True 
 B)False

Question 9

The law requires that

Accepted Answer

A) points be limited to 5 percent of the purchase price. 
B) the seller pays no more than 4 points. 
C) the borrower pays no more than 4 points. 
D) points must be included when calculating the APR for the loan. 
A) points be limited to 5 percent of the purchase price. 
B) the seller pays no more than 4 points. 
C) the borrower pays no more than 4 points. 
D) points must be included when calculating the APR for the loan.

Question 10

A loan to purchase real estate in which the real estate itself serves as collateral is a ____ loan.

Accepted Answer

A) mortgage 
B) property 
C) real estate 
D) homeowner's 
A) mortgage 
B) property 
C) real estate 
D) homeowner's

Question 11

The front-end ratio compares the total annual expenditures for housing to the loan applicant's gross annual income.

Accepted Answer

A) True 
 B)False

Question 12

When comparing buying versus renting comparable housing,renting requires a ____ annual cash flow while buying typically ____ one's tax liability.

Accepted Answer

A) lower; increases 
B) lower; decreases 
C) higher; increases 
D) higher; decreases 
A) lower; increases 
B) lower; decreases 
C) higher; increases 
D) higher; decreases

Question 13

The abbreviation PITI stands for principal,interest,real estate taxes,and investment.

Accepted Answer

A) True 
 B)False

Question 14

A mortgage applicant who anticipated increasing interest rates would be most interested in

Accepted Answer

A) a settlement statement. 
B) refinancing a mortgage. 
C) a mortgage lock-in. 
D) a due-on-sales clause. 
A) a settlement statement. 
B) refinancing a mortgage. 
C) a mortgage lock-in. 
D) a due-on-sales clause.

Question 15

In general,you can avoid capital gains tax on the sale of your home providing you owned and used the home as your principal residence for two of the last five years prior to the date of the sale.

Accepted Answer

A) True 
 B)False

Question 16

Seller financing arrangements are risk-free for the seller.

Accepted Answer

A) True 
 B)False

Question 17

Home sellers must be upfront with potential buyers about the condition of the home by providing a

Accepted Answer

A) good-faith estimate. 
B) warranty deed. 
C) listing agreement. 
D) defect disclosure form. 
A) good-faith estimate. 
B) warranty deed. 
C) listing agreement. 
D) defect disclosure form.

Question 18

Title to real estate is transferred to a new owner through a deed.

Accepted Answer

A) True 
 B)False

Question 19

Couples buying a home should generally put ownership in both names.

Accepted Answer

A) True 
 B)False

Question 20

How much more would one have to pay per month on an $85,000 30-year loan if the interest rate increased from 7.5 to 8.5 percent? The payments per $1,000 debt under these terms are $6.9921 and $7.6891,respectively.

Accepted Answer

A) $54 
B) $84 
C) $65 
D) $59 
A) $54 
B) $84 
C) $65 
D) $59

Miguel and Anita make a $560 house payment every other week.Their loan is an example of a ____ mortgage.

Buying a home represents the largest expenditure most people ever make.

Silvia and Jason would like to purchase a home with the following monthly expenses: The couple needs to have an annual gross income of at least ____ in order to qualify for a loan if the front-end ratio requirement is 26 percent.

If the lender requires an 85 percent loan-to-value ratio,the borrower will have to make a ____ percent down payment.

The formal legal document that outlines the actual agreement to buy a house is called a(n)

When the purchase contract is signed,the seller keeps the earnest money as a deposit against the purchase price.

Most communities and housing developments have rules that govern such things as minimum lot size,the outside appearance and landscaping of the property,allowable secondary buildings,parking of vehicles,and other aspects of the use and appearance of the property.

The law requires that

A loan to purchase real estate in which the real estate itself serves as collateral is a ____ loan.

The front-end ratio compares the total annual expenditures for housing to the loan applicant's gross annual income.

When comparing buying versus renting comparable housing,renting requires a annual cash flow while buying typically one's tax liability.

The abbreviation PITI stands for principal,interest,real estate taxes,and investment.

A mortgage applicant who anticipated increasing interest rates would be most interested in

In general,you can avoid capital gains tax on the sale of your home providing you owned and used the home as your principal residence for two of the last five years prior to the date of the sale.

Seller financing arrangements are risk-free for the seller.

Home sellers must be upfront with potential buyers about the condition of the home by providing a

Title to real estate is transferred to a new owner through a deed.

Couples buying a home should generally put ownership in both names.

How much more would one have to pay per month on an $85,000 30-year loan if the interest rate increased from 7.5 to 8.5 percent? The payments per $1,000 debt under these terms are $6.9921 and $7.6891,respectively.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Exam 9: Obtaining Affordable Housing

Miguel and Anita make a $560 house payment every other week.Their loan is an example of a ____ mortgage.

Buying a home represents the largest expenditure most people ever make.

Silvia and Jason would like to purchase a home with the following monthly expenses: The couple needs to have an annual gross income of at least ____ in order to qualify for a loan if the front-end ratio requirement is 26 percent.

If the lender requires an 85 percent loan-to-value ratio,the borrower will have to make a ____ percent down payment.

The formal legal document that outlines the actual agreement to buy a house is called a(n)

When the purchase contract is signed,the seller keeps the earnest money as a deposit against the purchase price.

Most communities and housing developments have rules that govern such things as minimum lot size,the outside appearance and landscaping of the property,allowable secondary buildings,parking of vehicles,and other aspects of the use and appearance of the property.

The law requires that

A loan to purchase real estate in which the real estate itself serves as collateral is a ____ loan.

The front-end ratio compares the total annual expenditures for housing to the loan applicant's gross annual income.

When comparing buying versus renting comparable housing,renting requires a ____ annual cash flow while buying typically ____ one's tax liability.

The abbreviation PITI stands for principal,interest,real estate taxes,and investment.

A mortgage applicant who anticipated increasing interest rates would be most interested in

In general,you can avoid capital gains tax on the sale of your home providing you owned and used the home as your principal residence for two of the last five years prior to the date of the sale.

Seller financing arrangements are risk-free for the seller.

Home sellers must be upfront with potential buyers about the condition of the home by providing a

Title to real estate is transferred to a new owner through a deed.

Couples buying a home should generally put ownership in both names.

How much more would one have to pay per month on an $85,000 30-year loan if the interest rate increased from 7.5 to 8.5 percent? The payments per $1,000 debt under these terms are $6.9921 and $7.6891,respectively.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

When comparing buying versus renting comparable housing,renting requires a annual cash flow while buying typically one's tax liability.